ILS: Short-Term Bounce Could Have Further To Run

The euro bounce against the dollar could have somewhat further to run, implying further shekel strength, but going forward, we expect the global deleveraging process to continue, taking the Israeli unit back towards the ILS4.30/US$ area. Resistance in the short term comes in at ILS3.74/US$, a break of which could potentially set up gains toward ILS3.65/US$ in the event of sustained US$ downside.• The Bank of Israel continues to cut interest rates aggressively, most recently slashing the lending rate by 50bps to 2.50% on Monday - the fourth move in less than two months. This is a record low, and comes

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